Connecticut’s unemployment rate inches up

Economy lost 1,500 jobs in April

Published 7:39 pm, Thursday, May 18, 2017

Connecticut’s economy took another hit in April with the loss of 1,500 jobs, and the state saw its unemployment rate increase by 0.1 percent to 4.9 percent, officials with the Connecticut Department of Labor said Thursday.

The April job losses come after a March employment report that saw the state add 1,300 jobs, But state labor officials have now revised the March figure to just to a gain of just 600 jobs.

Andy Condon, director of the Labor Department’s Office of Research, said even with the loss of jobs in April, “we have seen small increases in the unemployment rate accompanied by larger increases in the labor force.”

“This continues to indicate that workers are entering or rejoining the labor force and many are finding work,” Condon said in a statement.

But two leading economists said they were troubled by Connecticut’s inability to sustain even modest job growth.

“This report should be setting off alarm bells at the state Capitol,” said Pete Gioia, an economist with the Connecticut Business & Industry Association. “Connecticut continues to trail the region and the country in job and economic growth.”

Donald Klepper-Smith, chief economist and director of research for New Haven-based DataCore Partners, said Connecticut has lost jobs in four out of the last seven months.

“Our aggregate economy is very much at risk,” Klepper-Smith said. “Jobs are a primary indicator of overall economic health and what we’ve got right now is an overall loss of momentum.”

Gioia said Connecticut has added 5,500 jobs since April 2016, the slowest year-over-year growth of the entire New England region.

“Connecticut is a serious outlier,” he said.

The employment sectors that had the largest losses were administrative and support services, where there were 3,000 fewer workers and the trade; and transportation and utilities, which saw a decrease of 1,400 jobs.

Employment sectors that posted gains last month included construction and mining, which added 2,800 jobs; and leisure and hospitality. The leisure and hospitality sector added 2,000 jobs, according to state labor officials.

The New Haven area led the state in jobs gains last month. The New Haven Labor Market Area added 900 jobs in April, 300 more than were added in the Danbury area.